The aftermath of an accidental injury can be a time of pain, stress, and confusion. A letter of protection is not needed in every injury case, but it matters in the ones where someone needs treatment and has no way to pay for it up front.
In short, an LOP is a legal document that allows individuals who have been injured to receive medical treatment without immediate out-of-pocket payment. The LOP is sent to a medical professional by a personal injury lawyer representing the injured party and acts as a guarantee that medical expenses will be covered by the proceeds of a future settlement or court award. Keep reading to learn more about how a letter of protection works.
What Is a Letter of Protection?
A letter of protection is a written promise from your lawyer to a treating provider that the provider's bill will be paid out of your settlement or verdict. Few people can pay for after-accident care out of pocket. An ambulance ride, an emergency room workup and a single night in a hospital can leave you thousands of dollars in debt before any imaging or procedure. Your insurance company may offer to pay for your medical bills, but if you accept their offer, you won't be able to ask for more money if and when your costs exceed their initial settlement.
A letter of protection is a legal assurance that you will pay your medical bills from your settlement when you receive it. It allows the doctors to provide whatever treatments you require knowing that they will receive future payment. For you, as a plaintiff, it allows you to receive healthcare without having to provide immediate funds or to accept whatever the insurance company offers.
When your case settles, or your attorney wins through litigation, your medical bills will be paid before you receive your settlement check.
Letter of Protection and Automobile Injuries
Sometimes it's easier to understand legal concepts like letters of protection with an example. Suppose you are driving through an intersection and another driver runs a red light, striking your car from the side. You are transported to the hospital in an ambulance with several injuries. By the time you're released, you have accrued thousands of dollars in tests and treatments, but you will also require a follow-up procedure, physical therapy, medicine, MRIs, etc. That means, in addition to the debt that you've already accrued, you will either have to pay for the services you still need or accrue additional debt. Instead of maxing out your credit cards or selling your home, healthcare providers will accept a letter of protection to ensure prompt payment once your case settles.
Letter of Protection for a Work Injury
Workplace injuries often work differently than car accidents, slip and fall accidents, and other accidental injuries because they are usually covered by workers' comp insurance. In Florida, under Fla. Stat. 440.02(20)(b)2., a non-construction business must carry workers' compensation insurance once it has four or more employees, while a construction business must carry it with even one. If you are injured during your workplace duties, your employer's workers' compensation insurance is responsible for your healthcare. That means that you will have to use the workers' comp doctors. While letters of protection still may come into play, particularly if the extent of the injuries is being contested by workers comp, they are less common than with car accidents and other types of personal injury cases.
What Does Florida Law Make You Disclose About a Letter of Protection?
Since March 24, 2023, disclosing the letter is a condition precedent to claiming the medical expenses at all. Fla. Stat. 768.0427(3), added by HB 837, requires a claimant treating under a letter of protection to produce a copy of the letter and itemized billing coded to CPT, HCPCS or ICD. You must also disclose whether you had health coverage when the treatment was given, whether the provider sold the account to a factoring company and for how much, and who referred you. If your own attorney made the referral, section 768.0427(3)(e) makes that referral admissible and treats the financial relationship between the firm and the provider as relevant to the provider's bias. Section 768.0427(2) then limits what the jury may hear about the size of those bills.
What to Do When Your Case Has Letters of Protection
Tell your attorney about every letter of protection signed on your behalf, because each one is paid out of the settlement before you see a check. A letter of protection is rarely the only claim on the money. A health insurer, Medicare or Medicaid may hold subrogation or reimbursement rights, a hospital may have filed a lien, and attorney fees and case costs come off the top as well. Ask for a written breakdown of what every lienholder is claiming before you agree to a settlement figure.
What You Should Do if You're Injured in an Accident
This is not to be construed as legal advice. If you've been involved in an accident, talk to Broward County personal injury lawyer Justin Weinstein of Weinstein Legal Team. You will not pay out of pocket, and he can begin representing you immediately. You will not owe attorney's fees or costs unless we recover for you.
Get Medical Attention Immediately
Many accident victims avoid getting the medical treatment they require because they're concerned about payment. The emergency room may treat you whether or not you have insurance or a means of payment, but they are also going to bill you for their services. For most people, a hospital bill can be ruinous. Still, you need to get medical treatment. Not only is it essential to your recovery, not getting medical care when you need it could hurt the outcome of any future legal claims.
Don't Accept an Initial Offer From the Insurance Company
In the hours after an accident, an insurance adjuster will likely contact you with an initial settlement offer. They will offer to settle with you immediately if you sign a waiver or release of claim. The settlement amount will probably cover your current medical bills and may even offer you a little extra. If your mind is on the hospital bills, this offer may feel like a huge relief, but it's not in your interest to accept it before talking to an attorney. First settlement offers are almost always low and invariably less than you would get if you negotiated through a personal injury lawyer.
Hire a Personal Injury Attorney
You may be under the impression that professional legal advice is something that you can't afford, particularly after an accident. In Florida, hiring a personal injury lawyer does not require any money out of pocket. At Weinstein Legal Team, our professional personal injury team works on a contingency basis. That means that we are paid from your settlement or court award. If we don't win for you, we won't receive payment. You will not owe attorney's fees or costs unless we recover for you. Our attorneys depose witnesses, collect the records and reports, retain experts, and negotiate with the insurer and the defense.
Frequently Asked Questions About Accident Cases
How Do Contingency Fees in Florida Work?
The Florida Bar sets contingency fee guidelines. Under Bar Rule 4-1.5(f)(4)(B) the ceiling is 33 1/3 percent of the first $1 million recovered up to the time the defendant files an answer or demands arbitration, rising to 40 percent of the first $1 million after that point. Keep in mind that your attorney fees may not be the only cost deducted from your settlement amount.
How Long Do I Have to Make a Claim?
For most accidents you have two years from the date of the accident to file suit, under Fla. Stat. 95.11(5)(a). It was four years until HB 837 (ch. 2023-15) cut it, and the two-year period applies to causes of action accruing after March 24, 2023. Do not wait on it. Records, video and witnesses all get harder to reach, and arranging treatment under a letter of protection takes time of its own.
